GLend - Gemach DAO's Premier Protocol

GLend is an innovative, decentralized, and open-source protocol that redefines borrowing and lending in the decentralized finance (DeFi) space. Developed as part of Gemach’s ecosystem, GLend aims to unlock the value of billions of dollars in crypto assets—many of which are traditionally illiquid due to being locked in tokens, LP positions, vaults, or derivatives—by enabling their use as collateral. The protocol is uniquely designed to support whole-portfolio collateralization, with initial support for prominent assets like GMX and GLP.

Overview

• Decentralized Finance (DeFi) Evolution: GLend operates without centralized control, giving users full autonomy over their funds. It leverages blockchain technology to provide a transparent, secure, and permissionless environment for financial activities.
• Collateralization & Autocompounding: Users can supply their assets as collateral and enjoy the benefits of autocompounding rewards, ensuring that yields are reinvested to maximize returns.
• Whole-Portfolio Collateralization: For the first time, entire portfolios can be used as collateral. This feature expands the usability of assets that were previously locked or underutilized in other protocols.
• Unlocking Value: Billions of dollars in crypto assets that could not traditionally be collateralized—such as various tokens, liquidity provider tokens, vault positions, and derivatives—now have potential liquidity, enhancing overall market efficiency.

How GLend Works

Supplying Liquidity

GLend allows users to supply liquidity to assets and earn attractive rewards. The process is designed to be intuitive:

1. Connect Your Wallet:

• Begin by connecting your crypto wallet to the GLend platform.
• A simple signature in your wallet confirms the connection; no transaction fee is incurred at this stage.

1. Select an Asset:

• Choose the asset you wish to supply liquidity for.
• View key metrics such as:
  • Total Supply: The current liquidity available.
  • Total Borrowed: The amount of the asset currently borrowed.
  • Deposit APY: The annual percentage yield earned on deposits.
  • Borrow APY: The annual percentage yield paid on borrows.

1. Approve the Asset (if necessary):

• Approve the selected asset within your wallet to grant GLend access to your balance.
• This step may require signing a transaction and paying a gas fee.

1. Deposit:

• Enter the volume of the asset you wish to deposit.
• When you deposit, the asset is automatically enabled as collateral, immediately increasing your borrowing capacity.
• Confirm the deposit by signing the transaction and paying any applicable gas fees.

Borrowing Assets

With supplied assets serving as collateral, users can borrow other assets against their positions:

1. Select Borrowable Asset:

• Choose the asset you wish to borrow.
• Ensure that there is sufficient liquidity and that your total borrow does not exceed your borrow limit.

1. Enter Borrow Amount:

• Input the desired amount and click the “Borrow” button.
• You might need to sign a transaction and pay a gas fee to complete the process.

1. Dashboard Management:

• Your dashboard displays the outstanding borrowed assets and your current borrow limit.
• This allows you to continuously monitor your risk and manage your positions effectively.

Risk Management and Liquidation

GLend employs a robust risk management framework to ensure the safety and stability of user positions:

• Borrow Limit: The maximum amount you can borrow is determined by the total value of your deposited collateral, adjusted by asset-specific collateral ratios.
• Borrow Utilization: This metric shows the ratio of your borrowed assets to your total collateral. It acts as a visual indicator to gauge risk:
  • <75%: Your position is relatively safe.
  • 75%-90%: Caution is advised.
  • 90%-95%: Your borrow utilization is high; consider adjusting your position.
  • >95%: High risk of liquidation. Immediate action (repayment or additional collateral) is recommended.
• Liquidation Process: If a user’s borrowed amount exceeds their borrow limit (i.e., borrow utilization >100%), the protocol triggers a liquidation event:
  • Liquidators step in to seize available collateral.
  • Market transactions are executed to repay the outstanding debt.
  • Liquidators earn a fee for their service, ensuring the system remains solvent.

Collateral Ratio and Liquidation Threshold

• Collateral Ratio: This is the percentage of an asset's value that can be used as collateral. For instance, stablecoins may have a high collateral ratio (e.g., 85%), while more volatile assets like BTC may have a lower ratio (e.g., 75%).
• Liquidation Threshold: Slightly higher than the collateral ratio, this threshold determines when a position is at risk of liquidation. Once the total value of borrowed assets exceeds the sum of the deposited collateral multiplied by the liquidation thresholds, the position becomes eligible for liquidation.

Audits and Security

Security is paramount for GLend. To ensure the integrity and resilience of the protocol, GLend undergoes regular audits by reputable firms:

• Peckshield Audit: A comprehensive review of the protocol’s security measures is available. View Peckshield Audit Report ^[1]
• Armors.io Audit: An independent audit that evaluates the platform’s safety and robustness. View Armors.io Audit Report ^[2]
• Ongoing Security Measures: GLend is committed to future audits and continuous improvements to safeguard user funds and maintain platform integrity.

Smart Contracts and Money Markets

GLend is deployed on the Arbitrum network and utilizes a range of smart contracts and money markets to manage its operations.

Smart Contracts ^[3]

Contract	Address
GLEND Token	0x43df266501dff4773f8f33179e3b96ab94dbc28d
Camelot V3 GLEND/WETH Pool	0xe9d3e6811d1be8ba40a9273ebec6ff09fe2a6741
Comptroller	0x5D57328423BEd206E0EE41c32bbCE4252E303d54
Unitroller	0xeed247Ba513A8D6f78BE9318399f5eD1a4808F8e
Price Oracle	0x7aa74f173bf3FF1Dc43858b8C109E9002F152FdC
Stablecoin Interest Rate Model	0xa738b4910b0a93583a7e3e56d73467fe7c538158
Crypto Interest Rate Model	0xc2933eff32188e4655887cdc9c707a77e1229595

Money Markets

GLend supports multiple money market contracts, facilitating both lending and borrowing operations ^[3]:

Asset	Money Market Contract Address
tETH	0x0706905b2b21574DEFcF00B5fc48068995FCdCdf
tWETH	0xa738b4910b0a93583a7e3e56d73467fe7c538158
tWBTC	0x0A2f8B6223EB7DE26c810932CCA488A4936cF391
tUSDC	0x068485a0f964B4c3D395059a19A05a8741c48B4E
tARB	0xC6121d58E01B3F5C88EB8a661770DB0046523539
tGLP	0xFF2073D3810754D6da4783235c8647e11e43C943
tGMX	0x20a6768F6AABF66B787985EC6CE0EBEa6D7Ad497
tMAGIC	0x4180f39294c94F046362c2DBC89f2DF7786842c3
tUSDT	0x4A5806A3c4fBB32F027240F80B18b26E40BF7E31
tDAI	0xB287180147EF1A97cbfb07e2F1788B75df2f6299
tFRAX	0x27846A0f11EDC3D59EA227bAeBdFa1330a69B9ab
tUNI	0x8b44D3D286C64C8aAA5d445cFAbF7a6F4e2B3A71
tLINK	0x87D06b55e122a0d0217d9a4f85E983AC3d7a1C35

GMD Asset Money Markets

Specialized money markets allow users to lend or borrow GMD assets ^[3]:

Asset	Contract Address
tgmdBTC	0xB60EF53BA18Bd85Ab642c2F78dF13e7aBCCdCb9c
tgmdETH	0xB5dBDb01B08bff12E822EB28259ECCEb6cC91529
tgmdUSDT	0x80aEFB7dAde25542cc2f558Ee605aC2FC974Ceb9
tgmdUSDC	0xe4843e44342617024F6b9d615dFfBe8858F8Ea16

Future Developments

GLend is continually evolving. Future enhancements are expected to:

• Expand collateral options to include a broader range of assets.
• Integrate additional money markets and optimize interest rate models.
• Increase the frequency and depth of security audits.
• Enhance user interfaces and dashboard analytics to better manage risk ^[4].

Conclusion

GLend stands at the forefront of DeFi innovation by unlocking the latent value in crypto assets that were previously sidelined due to collateralization limitations. By offering a decentralized, secure, and user-friendly borrowing and lending platform, GLend empowers users to maximize the utility of their digital portfolios. With rigorous risk management, continuous security audits, and a commitment to future enhancements, GLend is poised to redefine asset liquidity and financial interactivity in the crypto ecosystem ^[5].